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Analog Devices (ADI) Outpaces Stock Market Gains: What You Should Know

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Analog Devices (ADI - Free Report) closed the most recent trading day at $184.46, moving +0.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%.

Coming into today, shares of the semiconductor maker had gained 9.23% in the past month. In that same time, the Computer and Technology sector gained 9.47%, while the S&P 500 gained 8.19%.

Investors will be hoping for strength from ADI as it approaches its next earnings release, which is expected to be November 23, 2021. In that report, analysts expect ADI to post earnings of $1.69 per share. This would mark year-over-year growth of 17.36%. Our most recent consensus estimate is calling for quarterly revenue of $2.3 billion, up 50.98% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ADI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. ADI is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ADI is currently trading at a Forward P/E ratio of 25.48. This represents a premium compared to its industry's average Forward P/E of 25.37.

We can also see that ADI currently has a PEG ratio of 2.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 1.26 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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